JULY 2021
If you are preparing for the probate process as the executor of your loved one’s estate, there are different issues you need to consider, from notifying creditors to distributing assets. However, you could have to deal with estate taxes, depending on the value of your loved one’s estate. If you need to pay estate taxes, it is vital to understand your obligations and the way in which you can approach filing an estate tax return. Paying estate taxes in Washington State According to the Department of Revenue, an executor must file an estate tax return if the gross estate surpasses the filing threshold ($2.193 million in 2021). If a federal estate tax return is necessary, as the executor you have to include a copy of Federal Form 706 when you file estate taxes in Washington State. Executors must file an estate tax return and make an estate tax payment within nine months after the decedent dies, or else interest will accumulate. If you need additional time to file an estate tax return, you can apply for an extension. Applying for an extension to pay estate taxes The DOR reports that executors can file for an extension that gives them six additional months to file an estate tax return in Washington State. However, this extension does not give executors more time to pay estate taxes that are due. The DOR suggests that executors include an estimated tax payment when they file for an extension. The probate process is often very complex and can generate confusion as well as negative emotions. Make sure you understand your options and work through probate carefully.
Not many people want to think about what happens when they die, but when it comes to estate planning, it is important. One of the factors to consider is who will manage your estate, and you should choose this individual, known as the executor, with care. The role of executor is significant, and it takes quite a bit of time and effort. Duties and responsibilities of the executor According to CNBC, managing an estate requires a wide variety of responsibilities . Along with filing the will with the court, common duties include: Locating, valuing and securing named assets Locating and informing heirs Paying bills and debts of the estate Maintaining the estate’s property Distributing assets Filing and paying taxes of the estate The time it takes to close an estate ranges from an average of 4 months to 3 1/2 years, depending on the size and complexity of the estate. Traits of a good executor One of the important traits of an executor is trustworthiness, as you are entrusting him or her with a lot. According to AARP, organization is another trait that makes the role of executor easier. The individual should be able to prioritize tasks, maintain records, make to-do lists and create spreadsheets. It helps if the person lives near the estate, as there will be numerous trips to any property owned by the estate and possibly the courthouse. The individual should also have the time to focus on carrying out the will’s instructions. It helps if the executor has financial or accounting knowledge, but it is not imperative. The executor may choose to hire professionals to help with certain aspects of estate management. It is also possible to name co-executors, although these two should be able to work well together.
